been passed. thank you. >> any comments from commissioners? resolution 1259 has been passed. thank you. >> request of the recession to execute an amendment for an engineering services contract for the pier 43 link project, increasing the contract for a total contract amount not to exceed $900,000. >> we have a motion to approve? >> so moved. >> any public comment? >> second. opopvç>> all in favor? l northas been approved. >> request an exclusive

negotiation agreement with gsw arena llc for the lease and development of piers 30-32 and the sale or lease and development of the lots back on the by the embarcadero. >> commissioners, planning and development director. i am representing the core team of staff. brad and patricia. also representing the office of economic and workforce development under the direction of jennifer. we'n to be able to partner with the golden state warriors on this project, and they are operating through the entity of gsw arena

llc. they're being represented today by jesse from the strata investment group. i have a brief powerpoint presentation to take you through this project. we're asking for authorization to enter into exclusive negotiations with gsw for the purpose of developing piers 30, 32, and 330. in particular, gsw would be taking on the development of a multi-purpose facility that would be the home of the warriors, and their home games would be played there. but also conventions and other activities, as well as recreation and water-oriented

facilities that would be developed as well. the exclusive negotiating agreement would be for a two- year time span, which would take it up to june 2014. and it would have the possibility of a one-year extension. so the slide you're seeing relates to the project milestones. you will see that along the top, it focuses on at the major milestones and the high level milestones. environmental impact report, certification, and the approval of the ldda. you also notice that there are, and as you know from your experience, there are a number of key tasks that will need to be accomplished during that time. fiscal feasibility, which will kick off the environmental impact report process. the term sheet will begin the negotiations of transaction

documents, and in this two-year time span, there will be a lot of work that will need to be accomplished. due diligence on the part of the developer that will feed into the negotiations and agreements and the eventual approval consideration by you. of the lease disposition and development agreement and the lease itself. you also see there is a number of other related work. just to mention a few of them, you see the economic impact report, multi-modal transportation study, and good neighbor policies. just highlighting these, this project will have major economic impact on san francisco and the region. one of the first things that will need to be done is to study that and provide them permission to you as the tools you can use

in making your decisions regarding this project. we also understand that a project like this, to make it successful, one of the things that is going to be most important is that we address the transportation impacts and the transportation concern's for this area. so that process will start with the multi-modal transportation study that will lead to, we believe, a successful transportation plan that will address community concerns and concerns of others about how this project would ultimately fit into the neighborhood. we believe we will be building on the success of the giants' ballpark and the kinds of transportation planning that they have done to manage moving around the area. lastly, on this slide, a good neighbor policy. we believe that with the

development, we will have many, many positive benefits for this neighborhood, for the city, and acknowledge that they're going to be back to the neighborhood as part of this. again, building on the work that the giants did. we believe that we will develop policies that will address these kinds of attacks and minimize them for the community as this project moves forward. as it relates to the ena financial terms, the mainly focused in two areas. fees that are traditionallye+ílr negotiations as well as cost recovery that is customary in projects like this as well. so we are charging $25,000 per =, so $100,000 a year and

$200,000 for the two-year negotiating period. the first year, the developer will be paying those fees up to $100,000. but for the second year, those fees will be deferred until the entitlement process is completed. this is a very aggressive ú÷ very optimistic that we can rise to this challenge, and we're encouraged by the process we went through at the america's cup to be able to completed on time and be done before the expiration of the exclusive negotiating period. nevertheless, there is an extension potential built into this exclusive negotiating agreement, and there is a $25,000 charge for that one-year extension. lastly, a cost recovery.

you can see that there is approximately a 127 million- dollar cap for cost recovery. these costs are related to primarily the city's costs, both staff and third-party consultant costs. you can see from the slide how they divided it into two years. lastly, just wanted to touch on some key points as we begin this process and remind you, as you already know, and the public as well that the ena is not an approval of the project. it starts the process. we will be working closely with you all, with the community, with various stakeholders. we will be speaking about the outreach program on the next item. but the actual approvals will not come until the environmental

impact report, the eir, has been completed and certified and then we come back to you with a lease disposition and development agreement for your consideration, as well as the lease itself, assuming that you did approve that. then that these would go to the board of supervisors. we really believe that there will be a robust outreach program that will give both you and community members many opportunities to participate in

customarily part of the environmental impact report process. lastly, i just want to reiterate that we are requesting your authorization to be able to enter into exclusive negotiating agreement with gsw for the purpose of developing both piers 30, 32, and lot 330 for a multipurpose development that would include a home for the golden state warriors convention facilities and other activities. with that, i will end my presentation. i am is available to answer any questions. thank you. >> so moved. >> second. >> any public comment? i think we had one 9a. dennis? >> thank you, commissioners. my private practice is

consulting and education. i provided the proposal for the warriors to include a career path away academy class from inside this arena. i am asking that this board and mayor lee, the board of supervisors, and the chamber of commerce, public and private individuals and leaders support this approval for a classroom that can be open year round and provide our kids with tremendous incentives for their high school and college careers. for the public, my proposal is on my website. i wish you very well. i hope you support this arena. thank you. >> thank you. any further public comment? we do have a resolution in front of us, 1261, which i already had a motion to pass. any other comment on the resolution? all in favor? >> 9b, establishing a citizens

advisory committee for the proposed project on piers 30,32, and sea wall what 330. >> good afternoon, commissioners could a special projects manager representing the same team that was enumerated. i am here to introduce our special projects analyst who is going to be working with the oewd team. working on the community outreach program. specifically, we will be staffing the proposed cac should you approve the formation of that cac today. >> that afternoon, commissioners.

special projects analyst. please excuse my nerves. it was mentioned that the item before you requests approval to establish a citizens advisory committee for the proposed project on piers 30, 32, and seawall lot 330. on july 31, the board of supervisors adopted a resolution urging the port commission to form a citizens advisory committee. supervisor kim carried that resolution and is interested to see what we do. excuse me, to see that we do a thorough job obtaining feedback from the local community, and so this item today requests that the former ceo with up to 16 members and up to eight alternates. establishing a forum for community input which is exactly what is envisioned in the waterfront land use plan gender 5, which discusses implementation of the waterfront

plan envisions the projects of this scope will go through a cac process to make sure that we're getting robust feedback from the community as we develop projects of this type. and that there is a good community consensus before staff comes back to the commission to seek your approval on a project. we have always found that projects improved as a result of this project, as you know. >> you mentioned 16 verbally, but the slide says 15. >> i apologize, it is 16. >> ok, so 16 is the operative word? >> correct. i apologize. it was supervisor kim's vision that we add the staff level agreed that there needs to be a balance on the advisory committee that eight or approximately half of the members should be residence or small business owners in the surrounding neighborhoods. that is a balance the the

community the -- committee members would have specific expertise in transportation, housing, or other areas that are going to be beneficial to the project and that there be alternates to back up each segment of the cac. the cac is going to meet four times between now and the end of october to go over very specific topics, starting with an introductory meeting on august 23. that is expected to be held at the port and bayside conference rooms at 5:30 p.m., and the resolution would delegate to the port executive director. the director's power to appoint the cac. the csc will continue to me throughout the project, up until the board of supervisors adopted a lease or authorizes the port commission to do so. i would like to take a moment to read the cac's proposed mission statement. the pier 30, 32 cac will provide

staff and commissioners with questions and community concerns regarding the proposed project in well as evaluating comment on the city's plans and policies related to the project. the cac will assist by publicizing the project and so is the public comments from neighbors, community groups, and organizations. and with that, if you have any questions or concerns, brad and i are here to answer them. thank you. >> public comment. >> so moved. >> i do have a comment on your mission statement. >> yes. >> second. >> all right, one of the things i would like to add in terms of whether it is the mission statement or resolution is that you do adopt a written charter for the cac. and within the charter, that it not only goes to publicizing the projects, solicit public comment from neighborhoods, groups, and organizations, but also provides some options and solutions to the issues that are raised through the cac.

>> ok. >> so this also becomes a problem-solving vehicle for us as well as a vehicle for airing issues and concerns for the community. >> absolutely. we will get that to you. >> i would somehow like to add that into the resolution. i am not sure exactly how that will be ordered. >> ok. >> so moved. >> we can adopt as amended. >> council, isl advise? >> yes, i can provide language after public comment. >> ok, is there public comment? so prepared to come again, have a motion in favor with the amended motion. >> you need to state the imminent. >> the port commission urges the cac to meet initially on august 23, 2012 to review the project

generally once per month. develop criteria for attendance another by laws to encourage regular participation by cac members and to adopt a written charter that includes the process proposing cac solutions. >> move as amended. >> second. >> all in favor? resolution north 1262 is pas-- s passed. >> one of the great things about san francisco is the incredible talent we have across the city. the cac is an opportunity to rely on the expertise and the input and the old adage about making sausage, but we often end up with good projects from the kernville input from the public. we are appreciative of those willing to give their time and service to the cac.

>> and that this is such an exciting project. it is on the fast track. i look forward to the concerns and solutions that come out of the cac. >> i think my colleagues have said everything. >> thank you. >> 9c, informational presentation regarding potential license agreement for pg&e proposed embarcadero-potrero transmission project of pier 28.5 submerged bay lands and portions of the shoreline at 23rd street. >> commissioners, special projects manager. bear with me while i find the powerpoint presentation for this project. excellent.

i am here representing port staff member byron and the executive director. port staff was approached in the very recent past, within the last few weeks, by representatives of p. g. any, pacific gas and electric, regarding the reliability project to serve the downtown area of san francisco. that downtown area, if you recall, suffered some of blackouts in 1998. businesses win without power for a fairly extended time span -- businesses went without power. it cost the city to look at reliability issues for power serving downtown and the broader city. san francisco is on a peninsula. it is unusual in that respect.

it is hard to maintain a transmission grid that is on the peninsula. pg&e has, since that time, implemented some reliability projects. a line that ended at the hunters point substation. and has continued to work with its regulators, among them the california public utilities commission and the california independent system operator, to propose and develop options that would further enhance reliability in the city. and the proposal that pg&e will talk about today is to connect the 230 kv line from the embarcadero substation in downtown to the petros substation. -- potrero substation. the idea is that if there were a major earthquake in the city,

that in some way it disconnected the existing 115 lines that serve thedede substation, that there would be seismically-sound redundant transmission lines serving downtown so that the lights will not go out. this is a major transition project. these do not occur that frequently in the city. they are a highly regulated type of project. pg&e has indicated that they are starting the process to apply, formally applied to their regulators to kick off this process, and one of the routes they are evaluating is a long port property. i think i have covered the proposed route on port property. now i would like to invite robert donovan, the senior

planner of land and environmental management, to provide a project description overview. he is here with the principal project manager representing pg&e. thank you, robert. >> good afternoon. thanks for having us today. it was mentioned that we discussed this with brad recently, the project we are proposing, and it is to serve downtown san francisco. the map shows the route. there are three alternatives we're currently proposing. the blue route the goes to the bay is the route that would be on port property. so i guess that is the one you're most interested in. the reason behind the project is that the embarcadero substation is now served by two cables. this third cable installation would provide a lot more

flexibility for city projects, and then in case of outages like earthquakes, as you mentioned. the project, as proposed, would start at potrero station in the south and then go into the bay, go down about two city blocks. and then along 23rd street, into the bay. along -- adjacent to where there is already electric cable right now. it would go along the bay for about five to 10 feet below the bay mud. then it would pop back up on spear street and then over to the embarcadero substation.

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lease, cementing our application to the cpuc. the cpuc ultimately has sold jurisdiction on the routing of this project and that they will get the economic and engineering feasibility of the different routes. they will have the ultimate choice. one of them will be the port. they will be interested in what the lease costs are in terms of that lease as well. >> and robert is available to answer any questions that the commission may have when we're done with the presentation. i just wanted to close and said that robert minturn the california public utilities commission, the lead agency -- robert mentioned the california public utilities commission. they do an environmental review on the various alternatives to analyze in environmental impacts of each. as he showed you, two of the routes are upland routes and would involve installing a transmission line under city streets, so there would be quite a bit of construction activity among those routes. probably your construction impacts associated with the submarine alternative. robert also mentioned the transbay cable project. we have done a transmission line along a submerged route. port commission approved a

project like that in 2007 that later the board of supervisors considered. and if the commission so direct support staff, we do not have a resolution in front of you today -- this is just an information night. but if directed, we would enter into negotiations with pg&e over potential terms of agreements. and then participate in the cpuc and other regulatory process is to make sure the port and the city are well-represented. that concludes our presentation. thank you. we are available to answer questions. >> thank you. any public comment? comments? >> when do you plan on coming back to the commission? >> i think that might be driven by the cpuc application process. i think we would think it only appropriate that if pg&e submits

an application contemplating this project, that we come back seeking your authorization to enter a term sheet negotiation and some sort of companion cost reimbursement agreement to cover the city costs associated with negotiating an agreement like that. they could be as early as in september. >> and it does pg&e have a preferred alternative? >> the summary right now looks like the preferred alternative for us, yeah. for the reasons he discussed, the impact. we have done most of the ceqa analysis right now. to us, it looks like it will have the least amount of impact. seismically, it seems like a good route as well. it is looking like our preferred route. >> thank you. >> i think we discussed this in closed session. we understand the project.

overall, i think the commission is supportive of continuing in this direction for you to seek replication. it is true that you come back to us, we're open to discussing this further wou. >> 9d, informational update on status report infrastructure report and other report -- poured obligations under the agreement in preparation for the 34th america's cup event in 2012 and 2013. >> good afternoon, commissioners but i am with the port special projects group, presenting on behalf of a number of my colleagues that are here who contribute to the staff report accompanying this presentation.